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Mortgages became more affordable in 2009

Mortgages became more affordable in 2009

Category: Mortgages

Updated: 29/01/2010
First Published: 28/01/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Homeowners in England and Wales finished last year paying 20 per cent less of their take-home pay on monthly mortgage repayments than in December 2008.

At the end of 2008, consumers were spending an average of £196 of every £1,000 of their monthly pay on their mortgages . This sum dropped to £157 by the end of 2009.

The average monthly mortgage payments for homeowners now stands at £497, compared with £607 in December 2008, meaning a real cash saving of £110 a month, according to research conducted by Barclays.

"For the 11 million UK households who have a mortgage, there is a silver lining to the recession – a substantial reduction in mortgage payments right when they need it most," commented Andy Gray, head of mortgages at Barclays.

"For them, it's a chance to save in a way that they not have been able to before, or to overpay their mortgage and cut years from its life."

Londoners have most to cheer, as the proportion of take home pay spent on mortgage payments fell by almost a quarter (23 per cent) from December 2008 to December 2009.

Homeowners in the North East saw the smallest fall, at just 15 per cent.

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